Godaddy Stock Earnings Reports

GoDaddy reported Q1 FY2026 results with revenue up 6% to $1.3 billion and ARR up 6% to $4.3 billion. Normalized EBITDA margin expanded to 33% (210 bps YoY improvement) and normalized EBITDA grew 13% to $414 million. Free cash flow was $474 million (up 15%), bringing trailing 12-month FCF to $1.68 billion; management reaffirmed full-year guidance (revenue $5.195B–$5.275B, ~6% growth at midpoint) and FCF target of ~ $1.8 billion, with a full-year normalized EBITDA margin target >33%. Management highlighted strong early traction on AI initiatives: Airo AI Builder reached a $10M+ annualized bookings run rate within weeks of beta, Airo Care (AI-driven support) improved resolution rates (initial test ~+50%, bigger improvements in non-English markets) and is rolled out to 50+ markets/20 languages, and Agent Name Service (ANS) is being positioned as an open standard for agent identity tied to DNS. Bookings grew 3% to $1.5 billion with A&C (subscriptions & commerce) up 12% in revenue; A&C now ≈40% of revenue and A&C ARR grew 10%. Core Platform grew 3% with strength in primary domains partially offset by hosting softness, aftermarket comps and the .CO registry expiration (management says ~200 bps cumulative headwind embedded in FY guide). Management continues to prioritize higher-intent, higher-LTV customers, is pruning lower-value products (one retired this quarter with minimal bookings impact), and will ramp paid marketing for Airo AI Builder funded by efficiencies elsewhere. Capital allocation remains buyback-focused (repurchased $280M in the quarter; share count down to 133M), net leverage ~1.4x, cash $1.3B, total liquidity $2.3B. Key investor takeaways: durable margin expansion and strong FCF generation, early monetization and strategic potential from AI initiatives (Airo, ANS, Airo Care), disciplined capital allocation with continued repurchases, and reaffirmed FY targets despite near-term booking impacts from prior contractual and aftermarket dynamics.